MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Sunday, 21 April 2024

Zurich Insurance Company to acquire 70 per cent stake in Kotak General for Rs 5,560 crore

According to the lender, the proposed 70 per cent acquisition would be subject to the fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI)

Our Special Correspondent Mumbai Published 24.02.24, 10:18 AM
Representational image

Representational image Kotak General website

Zurich Insurance Company Ltd is acquiring a 70 per cent stake in Kotak General Insurance Company Ltd for Rs 5,560 crore in a single tranche. The transaction will value Kotak General at Rs 7,943 crore.

In November, Kotak General and Zurich Insurance had signed definitive agreements to carry out the deal in two tranches.

ADVERTISEMENT

Zurich Insurance will first invest Rs 4,051 crore to acquire a 51 per cent stake in Kotak General through a combination of fresh growth capital and the purchase of the shares of other investors.

In the second phase, Zurich will acquire an additional 19 per cent stake within three years from its initial acquisition.

“The parties to the aforesaid transaction,.. the bank, Zurich and Kotak General have mutually agreed that Zurich will acquire a 70 per cent stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately Rs 5,560 crore, instead of the proposal announced in our earlier disclosure,’’ Kotak Mahindra Bank said in a late evening regulatory filing.

The other terms of the transaction remain unchanged.

According to the lender, the proposed 70 per cent acquisition would be subject to the fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI).

While announcing the investment in November last year, Zurich said that India is expected to become the third-largest global economy by 2030 and presents significant untapped potential for the development of insurance solutions.

“The country’s rapid economic growth, coupled with low levels of insurance penetration, increasing awareness, strong digital infrastructure and expanded foreign ownership rules make it one of the most attractive and fastest growing insurance markets globally,’’ it added.

Earlier this month, the Competition Commission of India approved Zurich Insurance’s 70 per cent stake purchase in Kotak General.

Follow us on:
ADVERTISEMENT